Body Shop Essay

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Why would a company like the Body Shop want to forecast its financial statements?

Forecasting a firm's financial statements can help both financial managers and general managers. Pro forma statements help the financial manager plan the firm's financial needs. With an estimate of future income statement and balance sheet accounts, a manager can tell how much financing might be needed, and when it might be needed. Therefore, a company like the Body Shop can use forecasted financial statements to estimate how much future external debt financing the company needs.
Given the Body Shop’s growth level of 36.8% and 27.5% in the period between 1990-1992, it is assumed that the Body Shop will be able to sustain a relatively high growth rate …show more content…
This can then be duplicated for the next two years. Once completed, you can see that interest is exactly 10% of long term liabilities and the balance sheet balances.

PROJECTING FARTHER | | | | INPUT DATA | (in millions) | | | | | | | | 1993 | 1994 | 1995 | SALES | 191,673 | 249,175 | 323,927 | COGS/SALES | 0.44 | 0.44 | 0.44 | OPERATING EXPENSE/SALES | 0.36 | 0.36 | 0.36 | INTEREST RATE | 0.10 | 0.10 | 0.10 | TAX RATE | 0.35 | 0.35 | 0.35 | DIVIDENDS | 0.19 | 0.19 | 0.19 | CURRENT ASSETS/SALES | 0.42 | 0.42 | 0.42 | CURRENT LIABILITIES/SALES | 0.35 | 0.35 | 0.35 | FIXED ASSETS | 58,657 | 58,657 | 58,657 | STARTING EQUITY | 74,360 | 74,360 | 74,360 | | | | | INCOME STATEMENT | 1993 | 1994 | 1995 | | | | | SALES | 191,673 | 249,175 | 323,927 | COGS | 84,336 | 109,637 | 142,528 | OPERATING EXPENSE | 69,002 | 89,703 | 116,614 | INTEREST EXPENSE | (2,372) | (4,848) | (8,166) | PROFIT BEFORE TAX | 40,706 | 54,683 | 72,951 | TAX | 14,247 | 19,139 | 25,533 | PROFIT AFTER TAX | 26,459 | 35,544 | 47,418 | DIVIDENDS | 5,027 | 6,753 | 9,010 | EARNINGS RETAINED | 21,432 | 28,791 | 38,409 | | | | | BALANCE SHEET | 1993 | 1994 | 1995 | | | | | CURRENT ASSETS | 80,503 | 104,653 | 136,049 | FIXED ASSETS | 58,657 | 58,657 |

The Body Shop Essay

The Body Shop The Body Shop . It is nearly impossible to pick up any newspaper and avoid reading a section that deals with the unethical or even illegal conduct of the people who run our organizations. Whether its stock manipulation, dubious accounting practices, or discarding of environmental waste, the stories keep growing. Ethics are” the code of moral values and principles that rule the behavior of a person or group with respect to what is right or wrong (McGraw-Hill, 1)”.…

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The Body Shop Essay

THE BODY SHOP GLOBAL STRATEGIES AND RECOMMENDATIONS ON HOW TO IMPROVE THEM Table of Content I. Executive Summary of The Body Shop II. Introduction III. SWOT Analysis of The Body Shop IV. PEST Analysis of The Body Shop V. Porter’s Five Forces VI. EVR Congruence VII. Recommendation VIII. Conclusion IX. References I. Executive Summary The Body Shop International PLC (Body Shop) is one of the largest cosmetics companies in the world…

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Body Shop Essay

Body shop Economic: The biggest issues facing those in the beauty market is the current performance of the UK economy, and in particular its failure to fully recover from recession. Over all the UK, the GDP continued to decline from Q3 2011 to Q2 2012 (Office for National Statistics, 2012). The consumers will except lower price for the cosmetics，which is a serious challenge for beauty industry. Meanwhile, the rate of unemployment declines from 8.4%(January 2012) to 7.9% (August 2012) (Office…

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The Body Shop Case Study

had changed as it had developed, though that development had been incited by the achievement of The Body Shop. On the other hand, Roddick promptly concedes that the organization has committed errors – particularly in the United States where Body Shop started by listening to promoting conventionality and got to be sucked into mass advertising and shopping center society, which are it hard for Body Shop to emerge for its one of a kind qualities. After deals moderated in the mid 90's and franchisees began…

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The Body Shop Essay examples

The Body Shop I always thought that the iconic green shade of The Body Shop was selected to pay tribute to the environment but that’s far from the truth. In reality, when Dame Anita Roddick founded the first The Body Shop store in the 1970s, it developed a bad mold. And dark green was the only color that covered it up. A happy coincidence for the Brit brand whose premise is that all its products are derived from natural materials and inspired by things Roddick had discovered on her various trips…

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The Body Shop Marketing Report Essay

The Body Shop Executive Summary The Body Shop Company is an international and global industry that produces beauty and cosmetic products. It started in 26th March 1976 in Brighton by Anita Roddick. After more than 30 years of operations, there have been lots of changes and developments in The Body Shop Company, which includes the product category, the changes from the micro and macro environment, and how The Body Shop segments, targets, and positioned its image and…

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Palm Oil and Body Shop Essay

general ethical issues the Body Shop need to consider in its operational activities.This should include an outline of three ethical concerns, noting this should not mean that the business should be doing something wrong, just that these things are ‘concerns’ for it.EG * Reduce pollution by using non-fossil fuels. * Disposal of waste safely and in an environmentally friendly manner. * Sponsoring local charity events. * Trading fairly with developing countries Body Shop has decided to adopt…

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Personal Narrative: Herman's Body Shop

was at a yard sale where i thought was at her friends house so i started trying to make my way towards there, about an hour went by, I’m still walking and I remember I passed a little store with fencing around it and the store is called “Herman’s Body Shop’ and there was a man outside and I can’t remember why but i got scared, I then ducked down and started walking really low…

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Essay The Body Shop International Plc

founder, The Body Shop International In the late 1990s, The Body Shop International PLC, previously one of the fastest growing manufacturer-retailers in the world, ran aground. Although the firm had an annual revenue growth rate of 20% in the early to middle 1990s, by the late 1990s, revenue growth slowed to around 8%. New retailers of the naturally based skin- and hair-care products entered the market, bringing intense competition for The Body Shop. Amidst the competition, The Body Shop failed to…

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Anita Roddick and Body Shop Essay example

------------------------------------------------- 1)Conduct a brief survey of newspapers or business journals reviewing the company ' Body shop' , and identify their codes of practice or ethical stance on business issues. ------------------------------------------------- Przeprowadź krótki badania gazet lub czasopism biznesowych w celu przeglądu przedsiębiorstwa "Body Shop", i określenia ich kodeksy postępowania lub etycznej postawy w kwestiach biznesowych. -------------------------------------------------…

Words 2720 - Pages 11